Buying a house is one of the biggest things you will ever do in your life. There are fewer events which come close to choosing the home you are planning to stay in for years to come, even raise your children in, so it’s understandable that this can be emotional, and even stressful process to go through.
You are certainly not going to be the only ones attempting to buy a particular property. That means you need to arm yourself with the tricks of the trade to win a bidding war and make sure you are the one who holds the keys at the end of it all. Not sure how to do this? Read on to find out how.
Find out how to win a bidding war on your dream house
1. Sit down and think about your finances realistically
How much do you have to spend? Don’t go over this amount, stick to it; you are going to be paying your mortgage for an extended period, so it has to be an amount you can comfortably afford. Knowing your financial limits will help you win that war for the right house.
2. Make your best offer early
After you’ve worked out your finances, submit your best offer as soon as possible. You may find you are accepted pretty much straight away, in which case you can celebrate, but if someone does beat you, then you know that you didn’t end up making an unwise financial decision on a house you really couldn’t afford.
3. Keep your emotions out of it as much as possible
Buying a property is an emotional process because you are looking to move on with your future. However, it’s important not to let your emotions overrule sense. If you allow this to happen, you will throw money at a bidding war without really being able to afford it.
4. Take your time finding the right property
Don’t jump at the first property you find, instead look around carefully and locate the house which you want to throw all your efforts at. Once you find it, work out your financial capacity and put in your offer, sticking to it.
5. Communicate with the listing agent
You will look more attractive to the owners if you put in the effort to follow up and speak with the listing agent. This shows you are serious and could give you a serious edge in a bidding war.
6. Bide your time
We did mention above about putting in your best offer early, but there is also something to be said for swooping in at the last minute and catching the owner’s attention at the crucial time before closing.
7. Enquire about the possibility of closing early
Generally speaking, owners want to sell their property as easily and quickly as possible, and if you offer them the opportunity to do that, they may just take you up on it. This also cuts out the possibility of other buyers having the time to put together their bid.
8. Cut down on conditions
If you specify too many circumstances, then the owner is likely to look at someone who is less fussy’. This means you may end up spending more to grab their attention back. Don’t compromise on the things you need, but look at the conditions you are specifying.
9. Pull on the heart strings
We said don’t get too emotional about it, but that doesn’t mean you can’t show the owner just how serious you are, and how much you have fallen in love with the property. These are all necessary small steps in pushing the pendulum in your direction.
10. Rent the house back
If the sellers need more time before deciding on their options and selling the house, offer to rent the house back to them for a couple of months after making the purchase. This is a suggestion which could help them accept your offer.
Winning a bidding war is a case of strategy, and it is something you need to pay full and clear attention to. Keep your heart out of it as much as possible, and listen to your head, to avoid over-spending and causing a major problem in the future.